advice please?

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happyhev2010
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by happyhev2010 » Wed Jan 27, 2010 12:41 pm
Hi everyone,

I've been pottering about this site for a while and you all seem really nice and supportive so I wanted to ask soem questions.
My Husband and I are trying to figure out what we should do. We're currently approx 45k in debt (all unsecured.) We're just about making the monthly payments but on what we thought were reasonable salaries (29k and 30k before tax) we're not enjoying it much at all as sooo much goes out on debt. We've made some silly choices, but also had things to deal with that were out of our control - e.g my husband being unfairly dismissed and us having to relocate back to the uk.
Anyway - we want to be debt free, but also have some sort of a life again!We have a flat down in London that we're thinking of selling but not sure if it's worth it. What I really want to know is how much of my pay after bills etc could I expect to keep if I go into an IVA? I have under 100 per month which technically covers food and travel too - and I'm worried I could be worse off in an IVA?Any advice would be really appreciated!Thanks!:)

 

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Michael Peoples
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by Michael Peoples » Wed Jan 27, 2010 1:09 pm
Ho Happyhev and welcome to the Forum.
If you have only £100 per month for food and travel something is wrong and this is well below the basic acceptable guidelines.

Your level of income does suggest you should be able to meet your debts but it would be worth speaking to as IP and going through everything because if you are struggling there must be something amiss. IVAs may not be the best options but there are other alternatives which you could discuss. Good luck.

 

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happyhev2010
Posts: 8
by happyhev2010 » Wed Jan 27, 2010 1:14 pm
Whoops - sorry, I meant £100 per week. We're haemorragging money at the moment - I'm paying about 780 per momnth just in credit card/loan repayments. OUr flat in London is also losing us money - we're having to pay service charges of 300 per month and this isn't covered by our renter.Any more advice owuld really be appreciated!:)

 

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Tina Shortland
Posts: 2950
by Tina Shortland » Wed Jan 27, 2010 1:33 pm
Hi Happyhev2010 and welcome to the forum. Glad you've taken the plunge to pop on and make a post.

There are expenditure guidelines set by the Consumer Credit Counselling Service (CCCS) that all IVA propopsals should be based on together with what your normal monthly costs are for utilities, fuel etc. The guidelines include allowances for all sorts of expenses that some people forget about (including haircuts!).

You will also discuss all the options available to you so that once you know what you can realistically afford, what options there are and the details of each, you and your husband can make an informed choice of how to move forward.

Regards,

 

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happyhev2010
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by happyhev2010 » Wed Jan 27, 2010 1:37 pm
Thanks - that's really helpful. I know this might not be a question people can answer - but say (after all expenditures...) I had 600 per month available - how much of that could I expect would go to the IVA?

 

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Tina Shortland
Posts: 2950
by Tina Shortland » Wed Jan 27, 2010 1:40 pm
IVA payments are based on your disposable income so assuming that all the necessary expenditure has been included, making sure you can provision for all costs over the year, all of it will go into your IVA. If your budget is set right then this should not be a problem as you should be able to manage if you stick to it.

Regards,

 

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happyhev2010
Posts: 8
by happyhev2010 » Wed Jan 27, 2010 1:44 pm
So I guess for the next 5 years there would be no option for a social life/holidays/anything that wasn't a bill?I hadn't realised it was that drastic so maybe this is not the best option for us. Are bankruptcy payments equally harsh?

 

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Simbel
Posts: 348
by Simbel » Wed Jan 27, 2010 1:44 pm
Hi HappyHev welcome to the forum - An IVA is based on disposable income ie after all your expenses have been accounted for - what you have left over, so if £600 is what you have left over after everything is taken into account - I would say £600 is what they would expect you to pay into an IVA per month, but please don't take my word on this - one of the experts will be along shortly to answer your questions fully. [:I]

 

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Simbel
Posts: 348
by Simbel » Wed Jan 27, 2010 1:51 pm
No - unfortunately there isn't much left over for holidays (although I've read on here there are some people who still manage to go on short breaks, but not expensive ones!) - in all honesty if we look at it all the holidays we were use to were paid on credit card anyway otherwise we would not have been able to go on them in the first place. I'm sure you will still be able to socialise - socilaising doesn't have to be expensive does it? In short you will have to budget for everything - but as long as it's not luxury you should still be able to maintain a comfortable standard of living.

 

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Michael Peoples
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by Michael Peoples » Wed Jan 27, 2010 1:58 pm
The guidelines are quite tight and do not leave much for luxuries. However, if you earn overtime or bonuses you can keep it provided your net income does not increase by more than 10%. Anything over this is split 50/50 with the IVA so there is an incentive to earn a bit more for luxuries.

 

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Tina Shortland
Posts: 2950
by Tina Shortland » Wed Jan 27, 2010 2:15 pm
The expense guidelines include allowances such as sports, hobbies and entertainment, sundries and emergencies, childrens pocket money, household repairs etc so there is a provision for a life outside bills albeit not a lavish one!

As I'm sure a lot of the forum posters who are already in an IVA will tell you, you can do an IVA and enjoy life at the same time, if you know where to shop and how to make your money stretch further!

It may be though, that once you have sought full advice and understand all the implications, you may find another solution suits you better or that an IVA is the way forward.

Regards,

 

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ontheroad
Posts: 223
by ontheroad » Wed Jan 27, 2010 5:47 pm
Hi H2010 and welcome to the forum, if after seeking advice about all your options and you decide IVA is the right way to go then yes you will be living to a budget, but thats no bad thing because lets be honest most of us on here are in this situation because we have spent more than we should on many occasions and it does get your use of money under control, that in itself is a great learning curve as it will stand you in good stead for the future, believe me there is no better feeling than paying for everything in the month with your own money { not on plastic etc } and having a bit left at the end of the month. The budget looks tight at first but with a bit of careful planning and picking up some good offers here and there you soon become good at it. The most important thing is to make sure you are happy with your I & E to begin with because if thats not right to start with then it is difficult, make sure you discuss this at length with your ip, and dont forget if you want any help, advice or words of support then there are loads of people on here to help you, good luck in whichever route you choose.

 

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Adam Davies
Posts: 14596
by Adam Davies » Wed Jan 27, 2010 6:08 pm
Hi Happyhev and welcome
Bankruptcy on paper is easier than an IVA because you will only pay a maximum of 70% of your disposable income over a three year period rather than the 100% over a five year period in an IVA.
You really initially just need to have as chat with someone who can talk through all options with you/
Speak to several experts/companies before deciding on the correct route for you and your family
Regards
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